The Ukraine’s Cabinet decisions regarding the launch of a new electricity market from July 1 can lead to an increase in electricity tariffs for social facilities and businesses by 40-50%.
This was announced by the representative of the President of Ukraine in the Cabinet of Ministers, Andriy Gerus.
“I cannot support such a “reform”, moreover, I consider such liberalization of monopolies with preferences to private monopolists a complete discredit of reforms. The first: universities, schools, hospitals, kindergartens, all institutions, water utilities, electric transport, large, medium and small businesses will get rise in tariffs by 40% -50%,” the presidential representative in the Cabinet of Ministers said.
According to him, ultimately, such a price increase for the industry will fall on the shoulders of consumers in the form of higher prices for goods and services, which would result in high inflation and the National Bank of Ukraine would have to maintain a high discount rate.
“The state-owned companies Energoatom, Ukrhydroenergo and Ukrenergo will be put problems on, such as to pay for technological losses of private power companies (who buy oblenergo?), to pay high “green” tariffs (who is building giant “green” SES and WPP?), to pay cross-subsidization (who earned on the increase in tariffs for residential consumers over the past 3 years?). Are those non-discriminatory approaches and equal rules here?” Gerus emphasized.
The representative of the President also noted that with the new round of electricity tariffs growth for non-residential consumers there would be a huge difference in the tariffs for the population – by 3-4 times. It would create conditions for large-scale corruption schemes, when they sell cheap electricity to non-residential consumers.
As The Journalist reported, Ukrainian President supports to transfer launch date for new electricity market model.
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